Aetna will keep its insurance business separate from a newly combined entity with CVS Health, after a federal judge signaled concerns over the $69 billion merger.
The Department of Justice previously approved the deal after requiring Aetna to sell its Medicare Part D business. But federal District Court Judge Richard Leon’s skepticism presents a new challenge to the merger, one that could open up new questions over the court’s ability to block a transaction under the Tunney Act, the law that requires a judge to sign off on consent decrees between companies and the federal government.
Along with delaying the merger of Aetna’s health insurance business with CVS Health’s pharmacy benefit operations, lawyers for the two companies also agreed to hold off on the exchange of any competitively sensitive information, the the New York Times reported. Leon also floated the idea of appointing an official monitor to oversee the merger, a proposal CVS and Aetna are due to respond to on Thursday.
In a statement, a CVS spokesperson said the pharmacy chain and Aetna “are one company, and our focus is on transforming the consumer health experience.”
CVS and Aetna closed their deal last month and have already begun to merge some operations. Should Leon refuse to approve the consent decree, the case would advance to the D.C. Court of Appeals.
